PARK Magazine

FINANCE
An important
lesson learned
during the
pandemic
Preparedness
BY PHILIP W. MALAKOFF
Provides Peace of Mind
It’s been about two years since the terms
pandemic, social distancing, mask-up,
and coronavirus (just to name a few)
have become part of our daily
vernacular. As a society we have learned
about patience and resilience; as family
members we have learned how to stay in
touch from afar; as businesspeople we have
learned how to effectively and efficiently work
remotely; but above all else we have learned
that unfortunately anything can happen at any
time. The best safe guard against uncertainty
is being prepared – something we at First Long
Island Investors have been talking to clients
about for nearly 40 years, especially when it
comes to their financial well-being.
Many of our recent conversations have
centered around stories of people who became
ill with COVID, and while most of the stories
have happy endings, some do not. As a wealth
manager and trusted advisor to our clients, we
have heard anecdotes of how the surviving
partner or family member was overwhelmed
trying to understand the family finances,
including locating and accounting for all of the
assets. The pandemic has reminded us that it
is important to ensure that everything is in
order in the event that whomever serves as the
family’s CFO cannot fulfill that role, even if only
temporarily.
Let’s start with the basics – do you have a
current health care proxy, a power of attorney,
and a will? These are documents that everyone
should have, and they should reflect your
current wishes. If you do not, a reputable trust
and estates attorney can help you obtain and/
or update these and ensure they meet your
needs.
Next, do you have a list of all of your banking
accounts and investments as well as the
information for how to access each (advisor
contact info or web site)? This list would serve
as a way for your family to easily locate your
assets and should include bank accounts,
brokerage accounts (taxable and retirement),
partnership interests, private investments,
pension plan, employee/executive
compensation, life insurance, etc. When was
the last time you reviewed your beneficiaries?
Every brokerage account and pension plan
allows you to designate a beneficiary. You
probably completed the form when you first
opened the account, but it is also likely that
your life has changed since then. If you got
married, had children, got divorced, or became
widowed you should review your designations
and make sure they are as you intend.
Good financial preparedness can put your
mind at ease all while serving as a way for you
to review your current long-term asset plan.
We recommend that all investors have an asset
plan which includes an appropriate cash
buffer. A plan that can endure the unexpected,
such as a pandemic. As a best practice, we
recommend reviewing your financial assets
annually and making any necessary updates.
Life changes and your finances need to change
with it, but your confidence and peace of mind
never needs to change. P
Philip W. Malakoff, Executive Managing
Director at First Long Island Investors, LLC,
a Long-Island based wealth management
firm providing sound financial guidance
for nearly 40 years.